Tuesday, July 20, 2010

New MIT Study Finds Broadband Speeds Much Faster than FCC Reported | Broadband for America

A new MIT study says that previous estimates of U.S. broadband speed may have underestimated just how fast our national networks really are. In March, the FCC said that the broadband network was only half as fast as advertised.

However, the MIT study found that those measurements didn’t fully measure the speed of the “access network,” which Internet service providers (ISPs) control. For example, using the best method, Ookla/Speedtest, current typical speeds are 7.7 Mbps, not 3.8 Mbps.

According to the study, a simple figure for broadband speed isn’t sufficient to understand the quality of the nation’s digital infrastructure, and it’s just as affected by a user’s computer and the location of servers being accessed as it is by the ISP.

That's a bit akin to attributing all of an iPhone's dropped call performance to AT&T, and attributing zero to the iPhone's design, to the extent that the device itself can cause dropped calls.

Bad Connection Inside the iPhone?

Much attention has been focused of late on the external antenna design of the Apple iPhone 4 as a cause of signal attenuation (weak signal). Much attention also has been paid to AT&T's wireless network in at least some locations--New York and San Francisco, for example--as regions where bandwidth problems are worse.

But Wired magazine also claims that software issues related to the iPhone's baseband radio, might also be playing a part in the "dropped call" problem. Wired magazine says Apple sources confirm that the software running the iPhone’s main radio, known as the baseband, was "full of bugs" and contributed to the much-decried dropped calls.

What’s more, Apple had chosen to source the radio from Infineon, whose hardware was used widely in Europe but rarely in the United States, where cell towers are placed farther apart and reception is therefore less forgiving. The suggestion is that the radio has not be tweaked for different tower spacing, at least not well enough.

In truth the relationship between smartphone manufacturers and service providers likely has grown more complex. Handset vendors want maximum feature richness so the devices become indispensable. But carriers obviously would rather that the consumer bond be with the network, not the device.

Also handset suppliers want their devices to be used. To the extent that such use put additional demand on the networks, wireless providers might prefer that wireless data services did become essential, but not terribly network-taxing in terms of bandwidth consumption.

It's hard to tell, anecdotally, whether users typically blame AT&T or Apple for reception problems, but most might agree that AT&T has gotten the blame, up to this point. Perhaps the view will be a bit more balanced now.

Monday, July 19, 2010

Redbox Plots Web Strategy

Redbox is developing an online strategy to stay competitive with larger rival Netflix.

Redbox is losing some business as renters use kiosks to get new releases and go to Netflix for older, harder-to-find titles. Adding an online distribution component might help Redbox, which generally stocks about 200 new and top releases in its kiosks.

Why Marketers Can’t Afford to Ignore Baby Boomers

Baby Boomers should matter to marketers and consumer products companies because they spend 38.5 percent of CPG dollars, says Nielsen. Yet it’s estimated that less than five percent of advertising dollars are currently targeted towards adults 35-64 years old (which includes the latter half of Generation X in addition to Boomers).

With most marketers generally targeting 18 to 49 year olds, more than half of the affluent Boomer demographic is ignored entirely.

One wonders whether marketers really are missing the boat or know something, or believe they know something, about what they are doing. Maybe the incremental spend targeted at Boomers would not pay returns as high as the traditional targeting of younger demographics.

Verizon's LTE: Not Just Speed, Better Latency Performance

One of the finer points of the Verizon Wireless Long Term Evolution launch is the better latency performance, which will be helpful for real-time services such as video and voice. Reportedly, latency of 30 milliseconds is promised.

The 5 Mbps to 12Mbps downlink speed is nothing to dismiss, either. Verizon has said it will launch LTE in 30 cities by the end of the year.

Apple's Antenna Claims Bogus, Say HTC, RIM, and Nokia

Nokia says its devices are not affected by the way a user holds its devices, though it was not specifically accused of having that problem when Apple defended its iPhone 4 antenna design.

"Nokia has invested thousands of man hours in studying how people hold their phones and allows for this in designs, for example by having antennas both at the top and bottom of the phone and by careful selection of materials and their use in the mechanical design," said Nokia.

Nokia Siemens Networks Buys Motorola Network Assets

Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for US $1.2 billion in cash. The companies expect to complete closing activities by the end of 2010, subject to customary closing conditions including regulatory approvals.

That removes Motorola from a mobile infrastructure business it has been in for decades. The move does not affect the Motorola handset business.

Google Boosts Data Center Spending

Google reported capital expenditures of $476 million in the second quarter of 2010, more than doubling its spending from the previous quarter.

The latest capital expenditure number marks the company’s heaviest investment in its data center operations since the second quarter of 2008, when Google was wrapping up a flurry of construction projects in North Carolina, South Carolina and Iowa.

Search Optimization in the Mobile Age

The most significant change to how consumers are using smartphones to find companies is the widespread popularity of mobile apps. The big change for marketers is that people do not necessarily use a browser get information, such as restaurant reviews and product recommendations.

That in turn means traditional search engine optimization tactics are less effective. Also, social networking sites increasingly are being to search for content, information or products, which likewise has implications for online and mobile marketers.

Saturday, July 17, 2010

Mobile Value Shifting to Internet, Text, Trefis Says

The mobile phone business is the largest contributor of value to the stocks of three major carriers with interests in landline and wireless services. About 43 percent of AT&T's equity value is attributable to mobile revenue, Verizon 34 percent of Verizon's equity value and 89 percent of Sprint's value, according to Trefis.

The shift from mobile voice to mobile data has implications for where the value of each stock comes from and how the mobile carriers will compete in the future, as well. For example, 55 percent of Sprint’s value comes from its mobile voice plans and phones business, while another 34 percent of value comes from Sprint’s mobile Internet business. The value of the Internet segment will grow.

Trefis estimates that AT&T’s text messaging and Internet revenue per mobile subscriber for 2009 increased by 21 percent to $14.5 per subscriber, for example.

What Will LTE Mobile Operators Do About Voice?

Though it isn't by any means a show stopper, mobile operators launching Long Term Evolution networks still are considering several different ways of handling voice services.

In some, perhaps nearly all cases, LTE will be introduced as a data-only service. Mobile handsets typically will be introduced gradually as consumers decide to jump from their 3G services to 4G. Aside from native 4G voice protocols, operators always have the option to default back to 3G for voice.

That's the way the communications business is: there are many "legacy" applications, processes and issues that must be incorporated when migrating to a next-generation network.

RIM Execs Deny Apple Test Data on Signal Fade

The Research in Motion "BlackBerry Bold" device, as tested by Apple, appears to show the same signal fade issues as the Apple iPhone 4 when held in certain ways. RIM executives deny they have a signal reception problem.

watch the demo: signal fades

"Apple's claims about RIM products appear to be deliberate attempts to distort the public's understanding of an antenna design issue and to deflect attention from Apple's difficult situation," say Mike Lazaridis and Jim Balsillie, RIM Co-CEOs. They don't specifically refute the Apple test data, though, which is odd.

They simply say "RIM is a global leader in antenna design" and say RIM "has avoided designs like the one Apple used in the iPhone 4 and instead has used innovative designs which reduce the risk for dropped calls, especially in areas of lower coverage."

Again, that doesn't specifically address the Apple test data.

link

Friday, July 16, 2010

Smartphone Antenna Performance: BlackBerry, Droid Have the Same Problem?

Apple says other smartphones, such as the BlackBerry Bold and Droid Eris, have the same problem with signal attenuation when the devices are held.

Mobile phone signal attenuation happens whenever a signal is obstructed, Apple notes. The density and composition of the human hand can cause attenuation to a greater degree than some other materials.

On a mobile phone, signal loss typically occurs when your hand attenuates the most sensitive part of the antenna. Apple even has put together videos demonstrating how different grips cause attenuation on many popular smartphones, not just the iPhone 4 and iPhone 3GS.

See Steve Jobs Discuss "Antenna-gate"


watch the video (you may need QuickTime). You didn't think Apple would post on YouTube, did you?

Droid X Sells Out

The Motorola Droid X is sold out online and in certain parts of the country at retail Verizon and Best Buy stores, despite Verizon Wireless' insistence on Wednesday that it would have plenty of the phones in stock.

You will now have to wait until July 23 if you want a Droid X if you didn't get one Thursday.

Has AI Use Reached an Inflection Point, or Not?

As always, we might well disagree about the latest statistics on AI usage. The proportion of U.S. employees who report using artificial inte...